The LRA is preparing to replace the current GST with a multi-stage VAT system starting 1 January 2027.
The Liberia Revenue Authority (LRA) has announced that training programs are underway to prepare for the rollout of a new VAT system, which will replace the existing GST framework starting 1 January 2027.
Businesses will be able to register for the VAT regime beginning in July 2026.
VAT is a broad-based consumption tax levied on goods and services, both imported and locally produced, except those exempted by law. Unlike the current Goods and Services Tax (GST), VAT operates as a multi-stage tax collected at every level of the production and distribution chain, ensuring greater transparency and efficiency in revenue collection.
The introduction of VAT follows the passage of An Act to Amend Part 3, Chapter 10 of the Liberia Revenue Code of 2000, providing the legal foundation for replacing the Goods and Services Tax (GST) with VAT.
The new VAT system in Liberia aims to modernise taxation, reduce evasion, promote fairness, and ensure that businesses and consumers contribute more equitably, while also improving revenue collection and public service delivery.
Earlier, Liberia’s Ministry of Finance and Development Planning delivered the draft national budget for 2026 on 11 November 2025. The 2026 Budget increases the GST rate from 12% to 13%, reflecting a gradual transition toward the new VAT system, which will carry a standard rate of 18% from 2027.
